Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London


ABS or asset-backed securities are bonds or notes created via securitisation that are backed by a range of assets or receivables. Generically, all securitisations can be labelled ABS and it is often used as a coverall term; in some cases in SCI, ABS will be used in this manner. However, in many cases, ABS are taken to exclude mortgage-backed securities (MBS) and structured credit instruments, such as CDOs. If so, then asset-backed securities or ABS are taken to include consumer ABS, such as credit card securitisations, auto loan or dealer floorplan ABS, student loan securitisations, project finance/infrastructure securitisations and equipment leasing-based transactions. ABS originators are typically loan issuers, such as banks, credit card companies, auto finance and consumer finance firms, but can be any institution that generates regular, quantifiable future income flows (or cashflows), which includes governments. To create asset-backed securities, institutions sell pools of their loans to a special-purpose vehicle, or SPV, which then sells the loans to a trust. The trust then repackages the loans as interest-bearing securities and issues them. This true sale of the loans to the SPV ensures that the ABS is treated as being bankruptcy-remote from the originator.

  • SCI Start the Week - 7 August

    A look at the major activity in structured finance over the past seven days.

    Pipeline ABS deals accounted for more than half of last week's pipeline additions. There were seven...

    News    7 August 2017
  • Peripheral ABS playing catch-up

    Structured finance issuance in the European core has held up well over the summer, with spreads cont...

    News Analysis    4 August 2017
  • Risk transfer round-up - 4 August

    Capital relief trade players are expecting a quiet August, before the flurry of activity that will d...

    News    4 August 2017
  • Inaugural aviation ABS readied

    Sky Aviation Leasing International is in the market with an inaugural securitisation. Dubbed S-JETS...

    News    4 August 2017
  • Debut diamond ABS prepped

    Diarough Group - the trading name of Egon Holdings and Emby International - is m...

    News    3 August 2017
  • UK ILS hub to drive new issuance, innovation

    The proposed ILS regulatory and tax regime due to come into effect on 1 January 2018 aims to put the...

    News Analysis    3 August 2017
  • NPL servicer breaks new ground

    Alvarez and Marsal has established the first independent business loan servicing company in Greece....

    News    2 August 2017
  • Regulatory call exercised for Calico

    The Co-operative Bank last week announced a regulatory call of its Calico Finance Number One capital...

    News Analysis    1 August 2017
  • RFC issued on gas prepay approach

    S&P has requested comments on its methodology for rating US physical commodity prepayment AB...

    News    1 August 2017
  • SCI Start the Week - 31 July

    A look at the major activity in structured finance over the past seven days.

    Pipeline The rate of pipeline additions stayed consistent last week. There were six new ABS, five R...

    News    31 July 2017
  • Risk transfer round-up - 28 July

    Delay has been the theme in the capital relief trades market this week. Nordea has begun marketing...

    News    28 July 2017
  • Whole business maturity wall eyed

    US whole business securitisation issuance was robust in 1H17, with US$5.1bn priced across seven issu...

    News    28 July 2017
  • Job swaps round-up - 28 July

    North America Ashurst is cutting its CLO practice because it sees it as "less relevant" to its glo...

    Job Swaps    28 July 2017
  • Counterparty update reflects margin rules

    Moody's has published its updated global cross-sector methodology for assessing counterparty risks i...

    News    27 July 2017
  • Euro secondary staves off summer

    The European securitisation secondary market has not yet quite shutdown for summer with a pick-up in...

    SCIWire    27 July 2017
  • SCI Start the Week - 24 July

    A look at the major activity in structured finance over the past seven days.

    PipelineA mix of ABS, RMBS and CMBS hit the pipeline last week. There were US$1bn-plus deals announc...

    News    24 July 2017
  • Job swaps round-up - 21 July

    Acquisitions BGC Partners has acquired commercial real estate finance company Berkeley Point Financ...

    Job Swaps    21 July 2017
  • Pension fund increases risk transfer mandate

    The New Mexico Educational Retirement Board has been steadily increasing its foothold in the risk tr...

    News    21 July 2017
  • Spanish card ABS prepped

    A Spanish credit card ABS rated by both Fitch and DBRS has started marketing (see SCI's deal pipelin...

    News    20 July 2017
  • Swedish regulations to limit risk transfer

    Finansinspektionen, Sweden's financial supervisory authority, recently released new securitisation g...

    News Analysis    20 July 2017
  • Robo-advisors could boost RMBS quality

    Robo-advisors could improve consumer loan and mortgage affordability and strengthen pool quality in...

    News    19 July 2017